BC Partners Joins to Sell $500M Chewy Shares Through Investing.com

PLANTATION, Fla. – Chewy, Inc. (NYSE: CHWY), a popular online retailer of livestock valued at $13.26 billion, has announced plans to launch a $500 million public offering of Class A common stock, currently owned by Buddy Chester. Sub LLC, an entity affiliated with BC Partners, Chewy’s largest shareholder. According to InvestingPro data, the company’s stock has risen 37% in the past six months, despite the fact that it is currently trading heavily. Today’s announcement includes an option for the underwriters to purchase an additional $75 million of Class A shares within 30 days.

Alternatively, Chewy has agreed to repurchase $50 million of Class A common stock from the Underwriters at the same price that the underwriters will pay in the public offering. This repurchase, known as a Concurrent Repurchase, will see the acquired shares liquidated and retired. It’s important to note that the sale is independent of Chewy’s $500 million share buyback program, which has no problem.

The Concurrent Repurchase takes into account the completion of the public offering but does not automatically place the offering. Barclays (LON:) is acting as sole issuer. InvestingPro analysis shows that Chewy has a good financial history, with sufficient cash flow to pay interest and low debt. Although the market may affect the progress of the offering, no assurance can be given as to its completion or timing.

The registration statement for the offering, including the prospectus, has been filed with the Securities and Exchange Commission (SEC). Prospective investors can find these documents on the SEC’s website or request them from Chewy or Barclays.

Chewy emphasizes that the present communication is not intended to sell or solicit the purchase of the securities mentioned. Furthermore, the sale of these securities will not take place in any jurisdiction where the offering would be prohibited prior to registration or qualification under applicable securities laws.

The information provided in this article is based on a press release from Chewy, Inc. For more information on Chewy’s economy and 12 additional ProTips, access the Pro Research Report available at. InvestingPro.

In other recent news, Opinions of the company Chewy Inc (NYSE:). He has seen several great events. The company’s largest shareholder, Buddy Chester Sub LLC, has initiated a $500 million public offering of Chewy’s Class A common stock. At the same time, Chewy has agreed to repurchase $50 million of its Class A common stock from its investors.

Among analysts, RBC Capital maintained an Outperform rating on Chewy, citing trends in the pet industry and a return to high-single-digit growth. The company has also raised the price of Chewy from $39 to $42. TD Cowen has followed suit, increasing its price target on Chewy from $38 to $39 while maintaining a Buy rating, following Chewy’s third-quarter earnings that exceeded consensus for both revenue and EBITDA.

RBC analysts also named Chewy as one of their top picks in the US Hardlines/Broadlines & Food Retail sector. This recognition is due to the potential of Chewy in the market.

Based on the financial situation, Chewy’s revenue in the third quarter came in at $2.88 billion, slightly exceeding the consensus of $2.86 billion. This was largely due to a 9.9% year-over-year increase in sales to Autoship customers. However, revenue from non-Autoship customers was down 13.4% year over year.

These are some of the recent developments that have changed Chewy’s position in the market.

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